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Call rates edge higher from previous close; gyrate below repo level

03 Jul 2014 Evaluate

Interbank call rates were trading higher at 7.80/7.85% against Wednesday’s close of 7.00/7.05%, as demand remained somewhat higher in the first half of reporting cycle. However, the rates were below the repo level of 8% amidst comfortable liquidity condition after Reserve bank of India on an assessment of the evolving liquidity conditions decided to conduct a 4-day term reverse repo variable rate auction for a notified amount of Rs 20,000 crore on July 3, 2014 (Thursday).

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 19867 crore via repo window and parked Rs 37234 crore via reverse repo window on July 2, 2014.

The overnight borrowing rates touched a high and low of 8.10% and 7.50% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.04% on Thursday and total volume stood at Rs 24741.04 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 7.91% on Thursday and total volume stood at Rs 33006.35 crore, so far.

The indicative call rates which closed 7.00/7.05% on Wednesday were contributions made from Andhra Bank, AXIS Bank, Bank of America, Bank of Baroda, Bank of India, Canara Bank, J P Morgan Chase, Citibank N.A., Corporation Bank, Credit Agricole Bank, Indusind Bank, ICICI Bank, ICICI Securities, IDBI Bank, Jammu and Kashmir Bank, Punjab National Bank, RBS, Societe Generale, Standard Chartered, so far.

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